3)Jessie receives a dividend payment of $5,600 from her investment in the shares of Jumpin' Joes Ltd. The shares are only 60% franked. What is the grossed-up amount of this dividend payment that Jessie must include in her taxable income? Assume a company tax rate of 30%. A) $8,000 B) $1,440 C) $2,400 D) $7,040

4) K & R Lollies Ltd earned $750,000 gross income during the financial year from its confectionery manufacturing business. The cost of inputs to the manufacturing process was $290,000 and other operating expenses for the year were $165,000. The business has $350 000 in debt outstanding, which has an attached interest rate fixed at 10% per annum. What is the taxable income of this company? A) $295,000 B) $400,000 C) -$55,000 D) $260,000

5) What is the present value of $300 received at the beginning of each year for 5 years? Assume that the first payment is not received until the beginning of the third year (thus the last payment is received at the beginning of the 7th year). Use a 10% per annum discount rate and round your answer to the nearest $100. A) $1,200 B) $1,000 C) $900

D) $1,100

6) You are thinking of buying a corner store. It is expected to generate annual cash flows of $63,000 in years 1 through 4 and $72,100 per year in years 5 through 8. If the appropriate discount rate is 10% per annum, what is the present value of these cash flows? (Round your answer to the nearest $10) A) $318,288 B) $292,943 C) $355,802 D) $719,136

7) You deposit $500 in a savings account earning an 8% annual rate, compounded continuously. How much will you have in your account at the end of five years (rounded to the nearest dollar)? A) $680 B) $625 C) $746 D) $544

8) What is the annual compounded interest rate of an investment with a stated interest rate of 6% per annum, compounded quarterly, for 7 years (round to the nearest 0.1%)? A) 10.9% B) 6.1% C) 51.7% D) 6.7% 9) The ordinary shares of Waterford Plastics Company have a beta of 0.76. If the expected risk-free return is 11.5 percent and the market offers a premium of 9.6 percent over the risk-free rate, using the CAPM what is the expected return on Waterford Plastics' ordinary shares? A) 15.4% B) 7.6% C) 13.4% D) 18.8% 10) You hold a portfolio with the following securities: Security % of Portfolio Beta Return X. 20% 1.35 14%

Y 35% 0.95 10%

Z 45% 0.75 8% Compute the expected return and beta for the portfolio. A) 9.9%, 1.02 B) 34.4%, 0.94 C) 10.67%, 1.02 D) 9.9%, 0.94

please show the calculation processes.